The overall implementation plan for GEM reform and pilot registration system was reviewed and approved. Several issues that are highly relevant to everyone:
1. How do ordinary retail investors open an account?
1. Existing customers, those who have already opened the GEM, can continue to trade GEM stocks only after signing a new risk disclosure letter;
2. Those who have not yet opened an account must meet two major conditions: first, they must have two years of A-share investment experience; second, their average daily assets in the 20 trading days before opening an account shall not be less than 100,000 yuan.
2. Trading system
1. For newly listed companies after the reform, there will be no price limit for the first five trading days after the new shares are listed, and then the daily price limit will be relaxed from the original 10% to 20%;
2. The previously existing companies will simultaneously implement a 20% price limit on price increases and decreases; (this means that in the future, the price limit on price increases and decreases for all GEM targets will be 20%)
3. What is the difference between the Science and Technology Innovation Board and the GEM?
According to the official answer, there is still a big difference between the two:
1. The Science and Technology Innovation Board is oriented to the world's technological frontiers, the main economic battlefield, and major national needs. It mainly serves technological innovation enterprises that are in line with national strategies, have made breakthroughs in key core technologies, and have high market recognition.
2. The GEM mainly serves growth-oriented innovative and entrepreneurial enterprises and supports the in-depth integration of traditional industries with new technologies, new industries, new business formats and new models. At the same time, after the reform of the GEM, the listing of companies with special equity structures and red-chip structures will be supported, and space will be reserved for the listing of unprofitable companies. The GEM has set aside a certain transition period for reform, and unprofitable companies can apply for listing one year after the implementation of the reform. "
Explanation: Compared with the GEM, the Science and Technology Innovation Board seems to be more cutting-edge and hard-core! But compared to the Science and Technology Innovation Board, the GEM still has a certain "mission"!
4. The impact that everyone is worried about
Many people say that after the reform of the GEM registration system, will it have a great impact on market expansion and diversion? Yes, it's big, but it's probably not what you think it is:
On October 30, 2009, the GEM was opened, and the first batch of 28 companies were listed, which had no impact on A-shares;
On December 25, 2009, the second batch of eight GEM companies were listed, which had no significant impact on A-shares;
On July 22, 2019, the first batch of 25 companies were listed on the Science and Technology Innovation Board, which had no impact on A-shares;
On August 8, 2019, the second batch of companies listed on the Science and Technology Innovation Board was listed, causing a substantial impact on A-shares
…
Taking history as a guide, how big an impact do you think this GEM reform pilot will have?
5. Market Hype Issues
1. The midline is relatively negative; market supply is expanding, and the midline is relatively negative;
2. Short-term good; absolutely good for securities companies and venture capital;
3. It is conducive to stimulating market vitality; both the Science and Technology Innovation Board and the GEM have an increase or decrease of 20%, which helps to boost market trading enthusiasm;
4. Sector targets will diverge: targets that may be delisted are a big negative, targets that will not be delisted are relatively good, and high-quality blue chips are good for the long term.
